The Property Council and HIA have welcomed the New South Wales Opposition’s Housing and Homebuyers Rescue Package.
HIA’s NSW executive director Wayne Gersbach said the move is a significant step towards economic recovery in the State adding the Governments’ Budget largely missed the opportunity to launch a housing-led recovery.
Gersbach said the package includes an extension of the First Home Owners’ Grant from $7000 to $10,000.
“Revenue forgone will be more than offset by higher GST, payroll tax and other receipts resulting from the increased building activity,” he added.
Property Council NSW president Mark Gray said many investors left the housing market after the vendor duty was introduced, so this measure will help to bring investors back into housing.
Gray said whilst the extension of the First Home Owner’s Grant would provide some relief to new homebuyers, further measures are needed to improve housing affordability and increase housing activity.
Secondly, the package calls for a stamp duty concession of $4000 for investors buying new homes in NSW up to $500,000 in value to be used for rental accommodation.
“We welcome this initiative it will encourage investment and help relieve the current rental crisis, particularly for those in need, while giving the housing industry another much-needed boost,” he said.
The proposal also exempts apprentices from Workcover premiums, a significant incentive to their employment, stimulating skills development and retention.
Gersbach said the exemption will bring NSW into line with Victoria.
Gray also welcomed the exemption of WorkCover premiums for apprentices and said this would help kick-start the construction industry and boost skills development.
By Adam Parsons
